Table of Contents

Cosco Calling 4 Corporate Overview 6 Timeline 8 Message from the Chairman 10 Message from the President 12 About the Cover Financial Highlights 14 Cosco Capital 16 Business Units Summary 18 Puregold 20 S&R 22 Store Network 24 Office Warehouse 26 Wine and Spirits 27 Elimac Prime Holding, Inc. 28 Fertuna Holdings Corp. 29 Patagonia Holdings Corp. 29 Nation Realty, Inc. 30 NE Pacific Shopping Centers Corp. 31 Pure Petroleum Corp. 32 Enriching Communities As One Alcorn Petroleum and Minerals Corp. 33

Over the years Cosco Capital has built a solid Cosco Cares 34 reputation enriching communities nationwide. Sustainability Efforts 36 From well-stocked grocery aisles, community malls and micro-entrepreneur support, delightful Cosco Credibility 42 baked goods and a bevy of beverages, corporate Board of Directors Group 44 office supplies to sustainable initiatives for a Board of Directors Individual 46 preserved and protected planet – Cosco has Awards and Recognition 51 consistently moved, serviced, and delighted a wide Financial Statements 54 range of people, with an eye to reach more. We serve as one. We advance as one.

Annual Report 2019 3 Cosco Calling

4 Annual Report 2019 Annual Report 2019 5 Corporate Overview In 2019, Cosco Capital, Inc. further established its status as one of the fastest Consists of our three subsidiaries: Montosco, Inc, Meritus Prime growing conglomerates in the . Liquor Distributions, Inc., and Premier Wines and Spirits, Inc. Together, we remain the leading importer of high-quality international Distribution alcohol brands to local shores—brands such as Patron Tequila, Johnnie Walker, Jack Daniels, Jose Cuervo, Chivas Regal, Absolut We are comprised of five core business units: Vodka, Jagermeister, and Alfonso Brandy.

Comprised of our flagship grocery businesses Puregold and S&R Includes six subsidiaries: Ellimac Prime Holdings, Inc., Fertuna Grocery with 378 and 18 nationwide stores, respectively. Puregold is the Real Holdings Corp., Patagonia Holdings Corp., Nation Realty, Inc., country’s second-largest supermarket chain, while S&R is currently NE Pacific Shopping Centers Corp., and Pure Petroleum Corp. Retail the country’s largest premier chain of warehouse shopping clubs. Estate Together, we own 55 commercial properties, 1 of which was In 2019, we opened 28 new Puregold branches, two new S&R acquired in 2019. Additionally, in the past year we opened two warehouse clubs, and one S&R quick service restaurant. new community malls in , and Bayawan, Negros Oriental. Specialty Driven solely by Office Warehouse, Inc., which aims to offer a wide range of office and school supplies at the lowest prices This is composed solely of Alcorn Petroleum and Minerals Retail possible. In 2019, we opened four new branches nationwide and Mining Corporation, Cosco’s subsidiary devoted to explore and develop our saw astounding growth driven by aggressive store expansion and interest in oil and mining business activities. Our business interests enhanced product offerings. in this area extends primarily to the waters of Palawan.

Each has performed very well, bringing in consolidated revenue of P166.06 billion for 2019.

As we enter a new decade, Cosco Capital is investing P3.6 billion in capital expenditures for 2020. We aim to not only sustain our company’s existing growth, but to surpass it as we aim to realize our full potential.

Annual Report 2019 7 Timeline

1988 1998 1999 2001 2004 2008 2009 2010 2011 Cosco Capital Retail Liquor Retail Retail Retail Retail Retail Retail On January 19, On September Distribution Puregold builds Puregold launches Puregold is recognized by Puregold becomes Now operating 62 stores, Puregold opens Alcorn Gold 8, Puregold two additional Tindahan ni Aling Reader’s Digest Asia as the second-largest Puregold launches another a record 38 new Resources Price Club was First shipment of hypermarket Puring, its flagship the Most Trusted Brand in hypermarket and format called Puregold Extra. stores. All in all, Corporation was incorporated and Alfonso Brandy stores in Manila loyalty program. the supermarket category. supermarket retailer the retailer now incorporated and registered with was shipped to the and Parañaque in the Philippines. Retail has a total of 100 registered with the SEC. Philippines from City. branches. Retail Puregold is recognized by the Securities Spain. Real Estate and Exchange Retail Puregold launches a Retail Asia Pacific as one of the Liquor Commission (SEC). smaller-scale format Pure Petroleum, Inc. top 500 retailers in the region. In December, called Puregold Jr. builds a fuel terminal Distribution Puregold Supermarket. facility inside the Montosco introduces opened its first Subic Bay Freeport Liquor Distribution Alfonso Light to the hypermarket store in Zone, which became Meritus Prime Distributions market. Mandaluyong City. operational in becomes the exclusive December 2012. Philippine distributor of Beam Global Spirits & Wine.

2019 2018 2016 2014 2013 2012 Retail Retail Liquor Distribution Real Estate Cosco Capital Retail By year-end, Puregold operates a total of 434 Puregold sells In collaboration with In March, Cosco Capital Alcorn Gold Resources Corporation renames itself to Puregold acquires stores. This consists of 229 hypermarkets, Lawson, Inc. all the renowned Spanish acquired the 10-hectare NE Cosco Capital, and becomes an official holdings company. S&R Membership 102 supermarkets, 28 extra, 19 minimarts, its shares in PG winery Bodegas Pacific Mall in . Shopping, with six 18 S&R warehouse clubs, and 38 S&R-QSRs. Lawson, Inc. Williams & Humbert, new warehouse Meritus launches Cosco Capital shopping clubs. Cosco Capital Office Warehouse Liquor Alhambra Solera On April 12, the Lucio L. Co Group purchased P74.8 billion Brandy. On June 11, Cosco Capital worth of shares of Cosco Capital and its numerous holdings. Retail Office Warehouse ends the year with 89 retail Distribution formally transferred its oil doors, with 67 in and 22 in and mining interests to Puregold opens provincial areas. Montosco APMC. Cosco Capital 31 new Puregold becomes the stores, and acquires On July 5, SEC approved the registration of Alcorn exclusive importer the Gant Group of Petroleum and Minerals Corporation (APMC), a wholly- Real Estate and distributor of Retail Companies (Parco Gilbey’s and Island owned subsidiary of Cosco Capital, Inc. All in all, the real estate group has over 34 supermarkets) with Mixers in the S&R opens its first four commercial buildings and 277,000 sqm of 19 new stores. Philippines. quick-service restaurants gross leasable spaces across NCR, Luzon, (QSR). Liquor Distribution and the , 97 percent of which are Cosco Capital acquires Montosco Inc, Premiere Wine occupied. & Spirits Inc and Meritus Prime Distributions Inc. Real Estate Retail In September, Fertuna Holdings Puregold partners with PG Retail Corporation opened Lawson, Inc. to build and Company E and Gant Group of Companies the 6.5-hectare operate a chain of Lawson merge with Puregold. Harbor Point Mall in convenience stores. Subic Bay Freeport Zone. Oil & Mining Office Warehouse On July 5, Alcorn Petroleum and Minerals Corporation was Cosco Capital buys Office incorporated to explore and develop Cosco Capital’s oil Warehouse with 46 stores. and mining business activities.

8 Annual Report 2019 Annual Report 2019 9 Message From the Chairman

At Cosco Capital, our foremost commitment is to deliver superior business returns for all our partners and stakeholders while enriching our customers’ lives. This is why we are thrilled to look back on 2019, a major year for our company’s growth—both in financial profits and in diversifying our services to better serve the Filipino market.

As a new decade dawns, we face many uphill challenges, most notably the Covid-19 pandemic. Despite this difficulty, we remain committed to all our people: our employees, stakeholders, and all our customers. Cosco will meet all challenges head on, committed to sustaining our growth and finding ways to serve. We look forward to meeting our commitments and exceeding our dreams working shoulder to shoulder with the whole Cosco community.

Lucio L. Co Chairman

10 Annual Report 2019 Annual Report 2019 11 Financial Performance of the various Message From business segments. Puregold and S&R turned in a record profitability, reporting a Overall, Cosco Capital reported a consolidated net income after tax of P6.8 billion or an increase of core net income of P9.320 billion, the President 9.2% from P6.2 billion in 2018. an increase of 14.8% over 2018 of The Liquor Distribution business, on the other hand, reported a P8.120 billion. Including the one- net income after tax of P1.2 billion from P738.0 million in 2018 or time gain on sale of Liquigaz, total an increase of 64.2%. net income in 2019, amounted to P15.4 billion. Indeed, it was a Our Specialty Retail vehicle reported a record net income of P97.0 banner year for Cosco Capital, Inc. million from P65.58 million in 2018, an increase of 48%.

The following are the highlights of business development.

1. Puregold opened 28 new stores vs. a target of 25: six in Metro Manila; 13 in Luzon; eight in Visayas and one in .

2. S&R opened two new warehouses: Lipa City and Libis, .

Thus, the end-of-year store count is 378 Puregold, 18 S&R, and 38 QSR, or a total of 434 stores nationwide.

3. Real estate commercial leasing opened two community malls located in Maria Aurora, Aurora and Bayawan Negros Oriental. Both have Puregold as an anchor tenant. We also acquired one commercial lot located at Barotac, Nuevo, Iloilo City.

4. Office Warehouse opened four new stores bringing its total store count to 89, 65 in Metro Manila and 24 in Luzon.

This is being written while the country is in the midst of a long On your behalf and that of lockdown. We are in a very challenging business environment, Management, allow me to a mark slowdown in all aspects of economic activities resulting extend our deepest gratitude in a widespread loss of jobs and unemployment. Furthermore, sentiments of the general public are at their low points. and congratulate our employees, Dear Stockholders, The year started on a high note when officers, and staff for a job well we concluded the sale of a subsidiary, Our various business segments are not exempted from the effects done! The loyalty and dedication of the challenging business environment. Nevertheless, we remain Liquigaz, in February 2019. they have shown and continue optimistic that we will be able to surmount these difficulties. Our to display in this challenging I am pleased to report the officers and staff will prove themselves equal to the task. performance of Cosco Capital, Earlier, in January of 2019, Puregold environment are recognized and Inc. in 2019. successfully closed a top-up placement The bulk of our business is derived from grocery retailing, which very much appreciated. of 104,300,000 shares from its fortunately is classified essential, which is allowed to continue to operate and serve the needs of its customers. unissued capital stock generating net To the Board of Directors, thank you for your continued support The year was a landmark year proceeds of about P4.7 billion. The The other segments, real estate commercial leasing, liquor for us, both in financial results exercise further strengthens the balance distribution, and office supplies, have been hit hard, but we expect and unstinting trust to the and business operations. sheet and liquidity position of Puregold. their recovery, albeit slowly as the overall economic condition Management and Staff of Cosco improves. Capital, Inc.

Leonardo B. Dayao President

12 Annual Report 2019 Annual Report 2019 13 Financial Highlights In thousand pesos

Consolidated Revenue and Net Income Revenue by Business Segment

2017 2018 2019

2017 2018 2019 Grocery Retailing 124,703,433 141,139,261 154,490,309

Revenue 145,638,800 168,210,357 166,066,712 Real Estate and 1,873,770 2,030,790 2,146,777 Property Leasing Net Income 7,470,700 8,481,804 15,393,207 Liquor 6,662,915 8,747,207 10,717,397 Distribution

Specialty Retail 14,953,360 19,179,888 2,451,217

Consolidated Revenue Contributions Net Income by Business Segment

2017 2018 2019 2017 2018 2019

Grocery Retailing 124,703,433 141,139,261 154,490,309 Grocery Retailing 5,494,122 6,199,500 6,772,788

Real Estate and 1,291,200 1,379,888 1,498,426 Real Estate and 922,091 1,085,959 1,225,477 Property Leasing Property Leasing

Liquor 4,694,538 6,514,653 7,630,101 Liquor 630,668 738,366 1,212,453 Distribution Distribution

Specialty Retail 14,949,102 19,176,554 2,447,877 Specialty Retail 524,776 691,815 97,033

14 Annual Report 2019 Annual Report 2019 15 Cosco Capital

16 Annual Report 2019 Annual Report 2019 17 Business Units Summary 2019 was a landmark year for Cosco Capital.

All of our five business units experienced increased revenues, driving profits and expansion. The sale of our Liquigaz division netted the company P6.07 billion in net profit. All told, our total profits grew by 81.49%% for a net total income of P15.39 billion.

Retail Page 20

Specialty Retail Page 26

Liquor Distribution Page 27

Real Estate Commercial Leasing Page 28

Oil and Mining Page 32

18 Annual Report 2019 Annual Report 2019 19 Puregold Corporate Social Responsibility Price Club Our community and various stakeholders are very important scholarship. Since its inception in 2011, to us. In line with our main thrust to better serve the Filipino, we’ve granted more than a thousand we realize our potential to improve the lives of several Filipinos scholarship grants, with over 500 graduates Puregold Price Club, Inc. is the through several CSR programs. at both the collegiate and senior high school levels. Philippines’ second-largest With 378 stores all over the country, we’ve made big supermarket chain, with over 378 contributions with regard to Filipino livelihood and created a Finally, we’ve partnered with the Golden stores nationwide. total of over 62,000 jobs—improving the lives of thousands of Reception and Action Center for the Elderly families in the process. (GRACES), a home for the aged located in Quezon City, and provide them with basic In 2019, we opened 28 new Puregold Puregold also recognizes the value of education in bettering necessities such as food and appliances on a branches in various locations all over the Filipino lives. Given this, we’ve continued to provide access quarterly basis. country. Revenue grew by P13.3B, up from to quality learning through the Luis Co Chi Kiat Foundation 2018 by 9.5%, with a total net profit of P6.77B Looking Forward We continue to strive towards our goal to have 500 Puregold the ties within the Puregold community as Company Culture branches all throughout the country. In line with this, we work we work hard towards our goal. towards automating all the possible processes we can, as we have Without a doubt, the sense of family bonds is Puregold’s file timekeeping-related concerns, can see far too many stores to rely on manual processes. strongest core value. We see our organization as a caring their performance reviews and be informed of community all interdependent on each other. We pride ourselves company updates, among others. This has spelled Nationwide expansion is definitely a priority for us. And as we in our democratic culture – in Puregold, employees are heard and efficiency and savings. look towards our goal of 500 branches, we continue to strengthen leaders are empowered to decide. Equality is heartfully exercised in the organization. We strive to cultivate a work environment conducive to our employees’ flourishing mental We recognize the importance of keeping our employees happy. So health. In these difficult times, we provide in turn, we work hard to make sure they are satisfied with working online mental health seminars to employees. with us through various initiatives. 99% of our employees receive We practice minimum health protocols ensuring salaries higher than minimum wage. Additionally, we promote them a safe workplace. people from within and promotions are strictly performance- based. All these have made our employees engaged and enabled Humility is one of our core tenets, which is us to be part of HR Asia’s list of best companies to work for in the seen through our very hands-on approach. We Philippines, for two consecutive years, 2018 and 2019. In 2019, work hard to bring together our top executives only 23 out of 190 nominees in the Philippines made the cut, and and our rank-and-file employees—in fact, top only seven made the list two years in a row. management go out of their way to talk to them and get feedback. Our executives believe We are also continuously enhancing and developing our in- in visiting stores and seeing store conditions house human resources online system and database, where for themselves, hereby fostering that sense of employees, wherever their assignments are in the country, can democratic inclusivity.

Keeping Operations Up to Date

As we continue to branch out and expand, we recognize the At the consumer level, we’ve partnered up with importance of looking forward and staying future-ready. Globe Fintech and introduced the country’s first barcode-based mobile payments solution via On an operations basis, we’ve begun a more efficient “clusterized” Globe GCash. Since it launched in June 2019, we approach in servicing our store branches. From our old now have 367 Puregold stores that accept GCash approach or servicing our branches on a per store basis, we’ve as a more convenient way of payment. started to visit groups of stores in close proximity to each other simultaneously. This proved to be very beneficial in terms of manpower efficiency and delivery of services.

20 Annual Report 2019 Annual Report 2019 21 New Products Backed by intensive market research and consumer insights, S&R has been able to create a product mix that reflects its members’ Celebrity S&R preferences. Tweets One successful outcome of its market research was the 2019 launch Membership Shopping of S&R’s professional cleaning materials category which caters to businesses, hotels, and offices in need of industrial-grade, professional cleaning products. S&R Membership Shopping is the Philippines’ largest and most successful It’s the 1st day of December and network of warehouse clubs. “I finally got our all The Food Game dressed up!

To date, there are 20 S&R warehouse clubs around the country. Two clubs opened in 2019 – S&R’s standalone food business, S&R New York Style Pizza, enjoyed consistent patronage in 2019. While it opened only one store last year, The fresh tree, lights & some golden S&R Lipa and S&R Libis – contributing to a healthy total sales growth rate of 15%. S&R focused on training its manpower in preparation for the opening of ornaments are from @snr_official up to 8 new stores next year. #LoveSNR #SNRuniquefinds In the first quarter of this year, S&R opened 2 warehouse clubs – S&R New Manila and S&R #SNRdiscovertheworld Circuit Makati. Construction of 2 more warehouse clubs opening in 2021 has also begun - S&R believes in investing in its people as they hold the key to building #SNRworldsbest #christmastree bringing the distinguished S&R experience to markets throughout the Philippines. a strong and reputable brand. Thus, learning and growth opportunities within the organization are encouraged. And the results have been very Dawn Zulueta - @dawnzulueta rewarding: S&R staff have consistently demonstrated quality customer service.

Preserving The S&R Experience Upwards and Onwards Instead of spending on advertising, S&R invests heavily on delivering customer satisfaction. Members enjoy great value from S&R’s signature Propelled by the country’s healthy products - such as pizza, roast chicken, and baked goods – its wide economy, S&R has been on an product range and its in-store promotions. S&R’s partnership with One of my favorite things to do in the upward trajectory enjoying the Unioil also adds value to membership as members get to enjoy fuel “U.S. is go to the grocery, especially gains made by the A and B markets. discounts with their S&R membership card. These positive experiences the big warehouse, membership-type have turned customers into brand ambassadors thus furthering S&R’s ones. We actually have a lot of the Through keen foresight and careful market reach. products here available in Manila at planning, S&R has also been able S&R. There’s no need to go crazy  to capitalize on the growing middle class (upper C), thus increasing its A Sustainable Future reach beyond the A and B market #SNRMembersTreat Sept 25-29! segments. After a successful pilot initiative in its solar energy program in the last #LoveSNR quarter of 2018, S&R increased its investment in sustainable energy in the 2nd half of 2019. It adapted solar technology for 3 other locations Joy Mendoza - @joytmendoza and reduced energy consumption for its warehouse clubs.

S&R will add 3 more locations tapping solar power by the 1st quarter of 2021. This will result in 7 S&R warehouse clubs using solar power technology to reduce its carbon footprint. It is S&R’s drive to convert The Expansion Process more locations to solar power. Based on its pilot initiative, solar technology on the warehouse roof reduces a warehouse’s power S&R’s bullish network expansion has been tempered by rigorous second floor. The new S&R Libis and S&R New Manila consumption by 25%. internal planning and reviews. are 3-storey structures, with 2-storeys for parking and Ang tunay na #goodboy, hindi nagche- 1-storey for its selling area. S&R is also working closely with the local government in view of checkout ng bikini pics sa InstaG... By being mindful of disruptive elements, like real estate prices, “ reducing waste and using recyclable materials. While some of its traffic, changing consumer behaviors, and even climate change, As for digital innovation, S&R has successfully partnered nagche-checkout ng goodies sa S&R locations have eliminated the use of plastic bags, all other S&R 😘 S&R has been able to develop highly adaptive strategies. with MetroMart for online orders and deliveries. In the warehouse clubs are expected to follow suit, including the elimination It’s time once again for S&R last quarter of 2019, an S&R Lazada site was launched. of paper cups and plastic cutlery in its quick service restaurants. For example, the S&R warehouse has traditionally been a one- And by the last quarter of 2020, S&R will roll out its Members Treat this coming Sept 25- storey complex on a 2-hectare property. However, given Metro e-commerce portal. 29.. mapapa-mura ka na, mamahalin Manila’s steep land prices and restrictive lot dimensions, S&R’s A Practical Vision ka pa ❤ #GalawangGoodboy more recent buildings have adapted a more space-efficient design. By understanding Metro Manila’s current urban #AlamNa #SNRmemberstreat opportunities, S&R has been able to make reasonable It is S&R’s mission to serve its members well by giving them the best value and by improving their purchasing power. By focusing on this S&R Paranaque and S&R Circuit Makati are 2-storey structures investments, which in turn have helped grow its Sam Y.G. - @_samyg where parking is on the ground level, and the selling area is on the business. mission and executing it well, S&R knows that there will be more huge opportunities on the horizon.

22 Annual Report 2019 Annual Report 2019 23 Store Locations (Puregold and S&R)

By the end of 2019, Puregold was operating a total of North Luzon 229 hypermarkets, 102 Puregold 99 supermarkets, 28 Extra, 19 minimarts, 18 S&R warehouse S&R 3 clubs, 38 S&R-QSRs, for a total QSR 4 of 434 stores located in the Total 106 following areas:

South Luzon

Puregold 106 Metro Manila S&R 3 Puregold 130 QSR 6 S&R 8 Total 115 QSR 24

Total 162

Visayas Puregold 32 Total S&R 2 QSR 4 Puregold 378 S&R 18 Total 38 QSR 38

Total 434

Mindanao Puregold 11 S&R 2 QSR 0

Total 13 Annual Report 2019 25 Office Warehouse Liquor Distribution

Office Warehouse, Inc. is the leading office solutions retailer Our core offering is office-specific supplies and in the country. We have partnered with small and medium furniture. This includes printers, ink and toner, Liquor Distribution is comprised of three liquor businesses and provided them with high-quality workplace ancillary office business machines, office and school distribution companies: Montosco Inc., Meritus supplies at aggressively competitive prices. supplies, and workplace furniture. Prime Distributions Inc., and Premier Wines and Spirits, Inc. These three companies have special Primary product selection trading relationships with the world’s biggest spirits and wine producers. Office Ancillary Ink and Workplace supplies office tech toners furniture

By focusing on the office market, we have carved out a Strategy niche service that generates strong returns. Montosco is the lead company, having Premier and Pernod Ricard, the second Our network of 89 stores includes strategic locations in key in its portfolio ALFONSO, the number 1 largest spirits company in the world, Office Warehouse has seen solid year-on-year growth business districts throughout Mega Manila. This allows us to imported brand in the country by volume formed a joint venture partnership, since the assumption of ownership in May 2014 by Cosco. effectively reach and service surrounding offices, and move and value. Alfonso brandy has been a part establishing Pernod Ricard Philippines, 2019 was particularly strong, with total gross revenue at products at a healthy, consistent pace. of Cosco Capital for almost 2 decades now. Inc., to be the marketing and distribution P2.45 Billion — a 17.32% increase over 2018’s earnings. This year, we’ve seen the light brandy grow arm of Pernod brands in this market. Our strong operations and marketing by more than 50%, an incredible increase in sales. Alfonso is now the Philippines’ Amongst Premier’s key brands are Jose Additionally, we opened four new stores this year - programs drive solid sales. Some of our Ayala North Exchange, Landmark Alabang, Puregold brandy leader. Cuervo, the world’s leading tequila; Jinro, Monumento, and Puregold Tanza - bringing our total initiatives include: the top spirits brand in the world; Penfolds, stores to 89. Our aim is to have 100 stores in the shortest Completing Montosco’s portfolio is Diageo world’s most admired wine brand; RedBull, Telemarketing, emails and text time possible. - the leading spirits company in the world world’s number 1 energy drink; and Perrier, message blasts - having Johnnie Walker as its main brand. the leading sparkling water in the world. A special trading relationship with Diageo Database mining to see what our has been established, including exclusivity As of 2019, Coscos liquor segment grew by customers need on key brands. 22.5% driven mainly by Alfonso. We ended 2019 with total revenues of P10.72 billion Mapping of districts and office-to- Meritus prides itself by carrying the and bottomline of P1.2 billion. office marketing to raise awareness number 1 bourbon whisky brand in about Office Warehouse the world, Jim Beam, and its strong Looking forward, the goal is to have relationship with Beam Suntory group - the as extensive a distribution network as We’re proud to say that Office Warehouse is known third largest spirits producer in the world. possible. Given the portfolio we have, for its exceptional, cutting-edge customer service. We It also represents the portfolio of W. Grant the fairness of the new tax regime, the strive to make purchasing easy and convenient - from & Sons where Glenfiddich, the leading flourishing relationships that we have door-to-door product delivery, predicting and pre- single malt whisky in the world, is among with our principals, and the economic ordering items based on client profiles and purchase its key brands. growth of our company, the elements for history, to the full-time management of our online sustained growth are strong and we remain shopping platform. The depth and breadth of Premier’s optimistic for a stellar 2020. portfolio are among its strengths. It has We’ve also maintained our popular Points Plus+ Loyalty a good balance of spirits, wines as well as Program, which lets us stay connected to our long-term specialty beverages in its portfolio. clients, 80% of which are small-to-medium enterprises. We reward members of the program with exclusive Its key distribution arrangements are with discounts and sales and a competitive points program. Treasury Wine Estates, the biggest publicly listed wine company in the world, Proximo Rapid expansion is our game plan for 2020. This Spirits of USA, Gruppo Campari of Italy, includes the training and satisfaction of our people, Jinro of South Korea, among others. making sure they are happy and fulfilled in their work. An empowered workforce is what makes Office Warehouse a success and able to meet the challenges of an office and technology business.

26 Annual Report 2019 Annual Report 2019 27 Realty Leasing Ellimac Prime Holdings, Inc. Fertuna Holdings Corp.

Ellimac Prime Holdings, Inc is Cosco Capital’s Fertuna Holdings Corporation is Cosco Capital’s flagship real estate company. It handles all land stronghold in . and leasing requirements for Cosco’s companies, including all Puregold shopping centers nationwide. The company is behind Harbor Point, a 6.5 hectare joint development with Ayala Land Inc. This com- P107M We currently own and lease commercial spaces in twenty (20) mercial retail complex located in the bustling Subic Total revenue prime properties throughout Metro Manila and several provincial Bay Freeport Zone and anchored by Puregold, con- in 2019 districts in Luzon and Central Visayas. Our properties enjoy a 96% tinues to drive profits for Cosco, bringing in P83.2M occupancy rate which fueled major profits in 2019. in gross revenues for 2019, and total net revenue of P50.29M. P46.5M Net profit Harbor Point’s continued success as a tax and duty free shopping hub is proof of our position as a leading commercial real estate P956M P520M 28.5% developer in Central Luzon. We will continue to work hard to 0.4% Total revenue Net profit YoY increase sustain our position as a major industry player as future ventures YoY increase in 2019 from 2018 and developments in this region come our way. from 2018

In 2019 we launched two new Puregold We’ve also revamped Puregold’s Food community malls, one in Aurora, Quezon Trip, the center’s official food strip, to Province and another in Bayawan, Negros enhance the dining experience within Oriental, a joint venture with the city Puregold. government. These initiatives undergird our vision Community malls are an exciting growth for 2020, which is to lease all remaining Patagonia Holdings Corporation area for us because they are slightly spaces in our commercial properties. different from traditional Puregold Patagonia owns seven lots in BGC with a outlets. They have 2 floors (more leasable As for building more Puregold branches, Bonifacio Global City continues to be one combined total area of 1.5 hectares. The areas), a cinema, and attract higher foot we have a healthy landbank of 9 of the fastest growing commercial and company’s 2019 revenue reached P132M, no traffic. We plan on developing more properties, with more land acquisitions business districts in Metro Manila. increase from 2018, based entirely on S&R’s community malls in the future; we’re in store for the future. This brings us growth in BGC. currently building a new one in Las Pinas, ever closer to our goal of 500 Puregold with operations slated to begin branches across the country. Servicing the residents of this The branch’s almost 20 years of successful in 2021. largely high-end urban district is operations is testament to Cosco’s position Ellimac’s strength lies in our relationships Our ultimate vision is to help Puregold as a leader in Metro Manila’s commercial real with the many tenants successfully shopping centers become complete S&R Membership Shopping on estate industry. operating throughout Puregold’s commercial spaces that feature hardware a parcel of land owned by Pata- extensive network. Their success is stores, a wide range of culinary choices, our success, and because Puregold is a and everything else our loyal shoppers gonia Holdings Corporation, a winning formula, most of our existing need - for better service and higher subsidiary of Cosco Capital. tenants practically sign up to be part of growth in 2020 and beyond. future stores.

We also keep things fresh and exciting by bringing in new tenants. In 2019 we welcomed Penshoppe, ForMe, and Lee Plaza, and Malaysian brand Mr. DIY into the Puregold network.

28 Annual Report 2019 Annual Report 2019 29 Nation Realty, Inc. NE Pacific Shopping Nation Realty Inc. The mall has two buildings, one four- storey building with a total floor area P409M is Cosco’s mall of 31,931 square meters and a seven- Total revenue development arm that storey building with a floor area of in 2019 Centers Corp. manages 999 Shopping 84,292 square meters. When NE Pacific Mall opened in In 2014, Cosco Capital acquired the mall and Mall, a discount bazaar As of 2019, 100% of our stalls remain the entire NE Group of Companies, including all mall in the heart of occupied, allowing for a large volume P207M 1997, it was a community mall 9 of NE’s community malls across Nueva Ecija. of goods to be sold daily. Moving Binondo. Net profit that quickly found its way into the Our move was strategic as Nueva Ecija is a major forward, we will sustain our business growth hub, so much so that direct competitors growth through mall expansion and hearts of Novo Ecijanos. Situated have already begun investing heavily there. 999 Shopping Mall’s strategic increased branding efforts. on an important cross section location and proximity to a wide We have since continued to grow NE Pacific Mall, 5.1% on the Maharlika highway that variety of transportation modes YoY increase as well as supplement its presence with other makes it a leading retail hub from 2018 links Metro Manila to far-flung businesses under Cosco Capital. Total revenue for 2019 was P263.37 million, a 5.2% increase over for Filipino shoppers looking surf-capital Baler, NE Pacific Mall 2018’s revenue of P250.26 million. This translates to purchase quality items at has long been a beloved and well- to P10,655 earned per square meter, based on our bargain prices. GLA of 24,742 sqm. visited mall. The Challenges of Growth Expanding Puregold’s Footprint In 2019, we have been extremely efficient in terms of leasing — we’re at 99.5% occupancy rate. We experience The acquisition of 9 community malls in Nueva turnover because of aggressive competitor malls but Ecija allowed us to expand the presence of Puregold have mitigated this with initiatives implemented before Supermarket in the region. NE Pacific Mall’s existing their arrival, for example the relocation of government infrastructure and operations made it easy to integrate offices within our mall, guaranteeing consistent, strong Puregold and service an entirely new northern audience. traffic.

Its integrations like these that make Puregold expansion NE Pacific Mall still has 5 hectares to build on and exciting, without having to start from scratch in new In 2020, we’re implementing a 3,000 square meter regions. mall extension and new parking lot. The annex will be connected to the mall and will be enough to accomodate the market and incoming tenants. Welcoming Neighbors - As always, our tiangge or shopping bazaar stands strong, Robinsons and S&R a key feature that other malls in the area do not have. Originally, we operated on 5 hectares of land, developing the space continuously, shaping the community mall to cater to all kinds of markets. We partnered with What The Future Holds Robinsons, offering them connected space beside NE Pacific, sharing foot traffic and tenant revenue. We’re bringing in new tenants — more service-oriented and food related ones apart from our retail selection. At In 2015, Cosco Capital acquired an additional 7 hectares NE Pacific, we are inspired, empowered, and confident of land behind NE Pacific Mall. This expansion put us to reach into the future as Cosco Capital’s major at 12 hectares and in 2018 we opened Nueva Ecija’s very presence in Nueva Ecija. first S&R, adjacent to the mall.

30 Annual Report 2019 Annual Report 2019 31 Pure Petroleum Corp. Alcorn Petroleum &

Pure Petroleum Corporation 2019 was a successful year for Pure manages and operates Cosco Petroleum Corp. We managed to retain Minerals Corp. Capital’s fuel terminal facility our 100% occupancy rate and impressive safety record from the previous year. All in located in the Subic Bay Freeport all, we earned almost P300 million. Alcorn Petroleum and Minerals We currently own and operate three Zone. Built in December 2012, the Corporation (APMC) is a government-awarded service contracts in terminal holds nine fuel storage We have a positive growth outlook for Palawan waters: tanks with a total capacity of 88.5 2020 and anticipate solid revenue as the subsidiary of Cosco Capital that million liters. We also operate a demand for petroleum products continues focuses on commercial oil and to rise. connected commercial port for mining pursuits. Service Contract (SC) 14 bulk loading and unloading. APMC oversees three operational blocks: North Matinloc West Linapacan The retention area

SC 6A (Octon Block) Covers around 165,000 hectares of shallow waters

SC 6B (Bonita Block) Covers 53,293 hectares

These exploratory regions are rich potential growth areas for Cosco Capital. Cement Project – MPSA No. 066-97-VIII

We have several plans in the pipeline, one of which is a cement production project which will directly address the high local demand for cement.

This will play into our larger plan to address the Philppine housing backlog which currently stands at 4.5 million homes, another potential high-growth area for Cosco Capital.

We are expecting government regulatory approvals and permits this year which will allow us to execute these and other projects towards the latter half of 2020.

32 Annual Report 2019 Annual Report 2019 33 Cosco Cares

34 Annual Report 2019 Annual Report 2019 35 Cosco Capital Cosco Capital has established a baseline for its sustainability efforts which will serve as a strong foundation as we pursue Sustainability Development more environmental and community initiatives. We are committed to rigorous monitoring, compliance, and reporting for Goals greater sustainability progress.

Goal 8: Decent Work Employee Engagement Top Talent Retention Rate For 2019: and Economic Growth Programs and Benefits People Recognition as Inspiration Training and Development Department Customer Service 100% 98% 95% • Puregold Price Club, Inc. • One of the Best Companies to Work for (Executive level) (Manager level) (Officer level) • Communications Skills in Asia (Philippines) 2018 and 2019 • Leadership Skills • Annual HR Asia Awards by Business Goal 1: No Poverty • Culture Building Media International (BMI) • Functional Training

Employees Employee Relations Programs Goal 4: Quality Education Cosco Capital • Annual Teambuilding • Employee Interaction • Pep Talks • Service Awards Education • Commendations • Yearly performance-based Luis Co Chi Kiat Foundation, Inc. (LCCKFI) scholarship grants are provided to merit increases and insurance 62,000 benefits children of Puregold employees. Beneficiaries enjoy free tuition fees and subsidies 60% jobs created • Scholarship grants to the in books, uniforms, transportation expenses and monthly allowances. increase in job children of loyal and deserving opportunities employees since 2011 4,600 • Puregold’s relocation policy lets employees work in jobs created on locations close to their average per year over families 516 of these scholars have graduated Of the 7,286 the last eight years 195 have graduated with honors direct employees 99 have passed the licensure exams in their respective fields of Puregold, more than 99% earn “Always PanaloKa Perks” more than the {part of employee relations youth sent to school minimum wage programs}

6% Partner Schools 52% Average promoted employees over the the rest of Luzon island past five (5) years 38% in the National Capital 23 Region (NCR) 2 years Average time for staff level employee to Colleges P45 million be promoted to supervisory level in funds released for education over 10% last 7 academic years in Visayas and Mindanao 3 years 13 Average time for a supervisor to be Senior high school promoted to officer or manager position

36 Annual Report 2019 Annual Report 2019 37 Goal 5: Gender Equality Goal 12: Responsible Consumption and Production Gender Equality Reducing Environmental 2,255.5 610 Pollutants Sachets in kilos PET bottles Women as Equal Partners in Progress Always Walastik (Walang Plastik) Puregold, aims to achieve a fair work environment and equal Always Panalo (Puregold Eco Drive) opportunities for both male and female employees. Total collected pollutants: 4,429 100 kgs Beverage/condiments Papers/cartons cartons 64% of Puregold’s workforce are women P22 million Puregold’s four (4) recycling schemes healthcare and statutory of managerial to executive positions benefits are provided to for customers: 58% are occupied by women women

of job promotions are attained Scheme 1 Scheme 3 58% by women 8 1 kg of used sachets = 2kg of cartons and/or (white) More than 75% of TINDAHAN NI out of 18 S&R’s warehouse 1 Surf and 1 Tide sachet papers = 1 roll Fresh tissue ALING PURING (TNAP) members club managers are women 75% are female

An advocate of Gender Equality, S&R empowers women by recognizing and Scheme 2 Scheme 4 leveraging their talents in the organization’s key positions. These include Vice President for Human Resources, Director for Finance, Directors for Merchandising 10 pcs of used beverage or 10 pcs clear PET bottles = (Food, Non-Food and Fresh), Director for Food Service, and Department Heads for condiments cartons (tetra 1 Nutriboost 110ml Marketing, Administration, Club Membership and Training. pack) = 1 Nestle All Purpose Cream 125ml

Planet Goal 3: Good Health Goal 6: Clearn Water and Well Being and Sanitation 50,131,920.00 MATERIALS RECOVERY FACILITY Promoting Clean Water Total PHP invested in 2019 to upgrade the existing STPs to comply with DENR’s effluents parameters. Recognition: Compliance and Sanitation Puregold San with Paper Bag Real Estate Ordinance: S&R and Puregold have made huge Fernando 1 for “Best Waste segregation is properly implemented in investments in water treatment and Bagwis Practitioner our community malls and developments. industrial water recycling with the 2,310,796.62 of Sustainable construction of sewage treatment plants Total cubic meters water used/consumed by the entire Consumption” from 100% Materials Recovery Facility (MRF) is a standard in almost all of its branches. These organization DTI (October 2019) Puregold’s paper bag in all our malls for proper waste disposal wastewater plants are compliant with the compliance standard parameters set by the Department of Environment and Natural Resources. 2,079,716.958 12 2,255.5 4,429 Total cubic meters treated used water in 2019 S&R branches that ban Sachets in kilos Beverage/condiments plastic bags and plastic cartons drinking straws Cosco Capital, Inc’s environmental unit is leading an initiative company water usage, scrutinizing all processes that involve water and proposing solutions that use less water. 38 Annual Report 2019 Annual Report 2019 39 At Cosco Capitals, Inc., we are working to reduce Infrastructure Our leasable spaces provide not only jobs and Affordable & our carbon footprint by cutting our identified livelihood to our communities but also contribute emissions in our operations. as a Sustainability to the economy through taxes that support city and Renewable Energy Component municipal development.

Our 3 key strategies are: Energy Efficiency 6000 97.99% 79.68% P80 million P16 million Leasable spaces Occupancy rate New branch Real property taxes Business taxes 257,634,166.63 55,301,800.65 opening rate Inclusive of our installing energy- contribution to the Special efficient equipment Education Fund Total KWH electricity Total PHP energy cost from diesel Note: all for 2019 consumption for 2019 (or and gasoline of Puregold in 2019 200,794 tons CO2 generated).

1,303,672.81 1,713,156.72 Community As part of Puregold’s annual outreach programs, sourcing renewable Liters diesel and gasoline Brigada Eskwela was held at 9 locations nationally. energy Total KWH electricity savings consumed in 2019* Sustainability for 2019 (or 1,335 tons CO2 (or ~3,107 tonnes CO2 generated) avoided) *Based on the average price of diesel and gas for 2019. Our data is total expenses for fuel only. The average gas cost used Goal 1: No Poverty is PhP51.5 and PhP33.3 for diesel. The School Pack Distribution Puregold Employees upgrading our conversion to ton CO2 is based on the IPCC Program: Gift-Giving in Roxas, 10999.1085249881 guideline and also used the average for CO2 refrigeration systems to diesel and gas. Mindoro, 2019 Sustainability Program lessen greenhouse gas Total GJ energy consumption S&R has invested in clean energy wastes. from LPG for 2019 (or 221.75 in order to reduce its carbon that affects People’s ton CO2 generated) footprint. Our 4 solar-powered Target: Mangyan brothers and Lives directly 414,098.94 branches are: sisters in Barangay San Vicente Tauga, Roxas, Oriental Mindoro (1,053.88 CO2 contributed) If there is a national contribution Total energy consumption from that Puregold is truly proud of, diesel of S&R in liters in 2019 it is the Puregold ‘Tindahan ni 6 years Aling Puring’ (TNAP) program, 147 a customized reseller program Gift packs designed especially for sari-sari store owners, karinderya owners 10,000 and bulk buyers/wholesalers. children, approx Goal 7: Affordable Puregold Dental and Clean Energy 481,171 30 schools Mission in Nueva Ecija, 2019 TNAP members numbers Renewable Energy Refrigeration Upgrading nationwide as of Dec 2019 S&R has invested in clean energy in order In terms of reducing greenhouse to reduce its carbon footprint. gas emissions, our refrigerations 150 Our 4 solar-powered branches are: and ACs are being upgraded People served and converted to ozone-friendly • Commonwealth refrigerants, an initiative started • Iloilo in 2012 with a target completion of 2025. 100 • Shaw Blood donors per event • Parañaque

40 Annual Report 2019 Annual Report 2019 41 Cosco Credibility

42 Annual Report 2019 Annual Report 2019 43 Board of Directors

44 Annual Report 2019 Annual Report 2019 45 Mrs. Co concurrently holds the following positions in other companies: The board of directors of the company is composed of nine members; Chairman and President of Cosco Price, Inc., Chairman of Tower seven are male, one is female, and one board consultant. No director of the 6789 Corporation and Director of Bellagio Holdings, Inc., Blue Ocean Holdings, Inc., Canaria Holdings Corporation, Ellimac Prime Holdings, company concurrently serves as a director in five or more listed companies. Inc., Kareila Management Corporation, KMC Realty Corp., Meritus The business experience of the directors are as follows: Prime Distributions, Inc., Montosco, Inc., NE Shopping Centers Corporation, PG Holdings, Inc., Patagonia Holdings Corp., PPCI Subic, Inc., Premier Wine and Spirits, Inc., Puregold Duty Free (Subic), Inc., Puregold Duty Free, Inc., Puregold Properties, Inc., Puregold Finance, Inc., Puregold Realty Leasing & Management, Inc., San Jose City I Power Corp., S&R Pizza (Harbor Point), Inc., S&R Pizza, Inc., Union Energy Corporation and Union Equities, Inc.

Mrs. Co holds the following positions in other Philippine listed companies: Vice-Chairman of Puregold Price Club, Inc. and Director of Philippine Bank of Communications.

Lucio L. Co, Mrs. Co received a Bachelor of Science degree in Commerce from the Filipino, 65 years old, University of Santo Tomas. Chairman of the Board of Directors since 2012.

Mr. Co is also the Chairman and President of the following companies: Bellagio Holdings, Inc., Canaria Holdings Corporation, Susan P. Co Ellimac Prime Holdings, Inc., Invescap Incorporated, Puregold Duty Filipino, 62 years old, Free, Inc., and Puregold Properties, Inc. Vice-Chairman of the Board since 2013. He is also the Chairman of the Alcorn Petroleum and Minerals Corporation, Entenso Equities, Inc., NE Shopping Centers Corporation, PG Holdings, Inc., Pajusco Holdings Corporation, Puregold Duty Free (Subic), Inc., Puregold Finance, Inc., Puregold Mr. Dayao was the President of Puregold Mr. Dayao holds the Realty Leasing & Management, Inc., San Jose City I Power Corp., from 2005 to 2014. He was first elected on the following positions in Union Energy Corporation, and Union Equities, Inc. board in 1998. He is also the Chairman and other Philippine listed President of Fertuna Holdings Corp., Chairman companies: Executive He is one of the Directors of these companies: Catuiran Hydropower of Catuiran Hydropower Corporation, Grass Director of Puregold Corporation, Cleangreen Energy Corporation, Forbes Corporation, Gold Renewable Energy (G2REC) Corporation, Price Club, Inc. and Vice- Grass Gold Renewable Energy (G2REC) Corporation, Karayan Kareila Management Corporation, League One Chairman of Philippine Hydropower Corporation, Kareila Management Corporation, Finance and Leasing Corporation, Pamana Bank of Communications. LCCK & Sons Realty Corporation, Luis Co Chi Kiat Foundation, Water Corporation, PSMT Philippines, Inc., S&R Inc., Meritus Prime Distributions, Inc., Montosco, Inc., League One Pizza, (Harbor Point) Inc., S&R Pizza, Inc., Vice- He received a Bachelor Chairman of Ayagold Retailers, Inc. President of Science Degree in Finance and Leasing Corporation, Pamana Water Corporation, Tower 6789 Corporation and VS Gripal Power of NE Pacific Shopping Centers Corporation, Commerce from the Corporation. Puregold Duty Free (Subic), Inc., Puregold Far Eastern University. Finance, Inc., San Jose City I Power Corp., He is a Certified Public Mr. Co also holds the following positions in other Philippine listed companies: Director of Philippine Bank Union Energy Corporation, Vice-President Accountant. He completed of Communications, Chairman of Puregold Price Club, Inc. and Chairman & President of Da Vinci Capital of Alerce Holdings Corp., Bellagio Holdings, the Basic Management Holdings, Inc. Inc., KMC Realty Corporation, Puregold Duty Program at the Asian Free, Inc., Puregold Properties, Inc. and Union Institute of Management He is a member of the Board of Trustees of and Luis Co Chi Kiat Foundation, Inc. Equities, Inc.; and Director of Canaria Holdings and earned units in MBA Corporation, Entenso Equities Incorporated, from the University of the Mr. Co has been an entrepreneur for the past 40 years. Karayan Hydropower Corporation and Puregold Philippines-. Realty Leasing & Management, Inc. Leonardo B. Dayao Filipino, 76 years old, President of the company since 2010.

46 Annual Report 2019 Annual Report 2019 47 Levi Labra, Robert Y. Cokeng, Filipino, 62 years old, Filipino, 69 years old, Director since 2017. Independent Director since 2013.

Mr. Labra also serves as Director of Hope Philippines, Inc. He holds Filipino, 69 years old, Independent Director Golf & Country Club, the following positions in other Philippine listed companies: Board since 2013 and Lead Independent Director Balesin Island Club, Consultant of Puregold Price Club, Inc. and Director of Philippine since 2017. Mr. Cokeng is the Chairman of Management Association Bank of Communications. the Audit Committee of the company. of the Philippines, and an Mr. Cokeng is currently the Chairman Advisory Board Member of Before joining the company, Mr. Labra worked in Procter & Gamble and President, F&J Prince Holdings Harvard Business School for 35 years. He was the Sales Head and a member of the management Corporation (PSE-Listed), Magellan Club of the Philippines. committee for 20 years. He was Regional Sales Manager for three years Capital Holdings Corporation, Center building sales organization and systems for India, , Malaysia, Industrial and Investment, Inc., and Mr. Cokeng graduated with Singapore, South Korea, and Thailand. Consolidated Tobacco Industries of the honors from the Ateneo Philippines. He is also the Chairman University with a degree He graduated with honor (cum laude) from the University of San of Pointwest Technologies Corp., Ipads of Bachelor of Arts in Carlos in 1978 with a degree of Bachelor of Science, major in Business Developers Corp., Chairman of the Economics Honors Program Administration. Executive Committee of BPO International. in 1971, Magna Cum Laude. He took a Masters in Mr. Cokeng started as Senior Investment Business Administration Officer and Philippine Country Officer in program from Harvard International Finance Corp. (world bank University in 1976 and group), Washington, D.C. from 1976 to completed it with high 1986 and Planning Associate in Mobil Oil distinction. Philippines from 1971 to 1972. Mr. Cokeng is a member of Wack - Wack Golf & Country Club, Tagaytay Midlands Roberto Juanchito T. Dispo, Filipino, 56 years old, Director since 2017.

Mr. Dispo is currently the President/CEO of in 1990 and Masters in League One Finance and Leasing Corporation, Business Administration Chairman of Mercantile Insurance Corporation, from the same school Blacksburg Corporation, Pontificio Collegio in 1991. He completed a Oscar S. Reyes, Filipino in Rome, and Vice Chairman of New Diploma Program from Filipino, 74 years old, San Jose Builders. the International Banking and Finance, Economic Independent Director since 2013. Mr. Dispo was the former Vice Chairman and Institute, University of Mr. Reyes is currently the Chairman of Link He is a member of the President of Cirtek Philippines from 2016 Colorado in 1994 and Edge, Inc. from 2002 up to the present. He was Management Association of to 2019 and CEO of Quintel USA/UK from Masters in Business the former President & CEO of Manila Electric the Philippines, FINEX, Asia 2017 to 2019. He became President of First Economics from the Company from 2012 to 2019, Senior Executive Society of the Philippines, Metro Investment Corporation from 2011 to University of Asia and the Vice–President & Chief Operating Officer of and the Employers 2015, Senior Vice President and Executive Pacific in 2014. Manila Electric Company from 2010 to 2012. He Confederation of the Vice President of First Metro Investment was the Country Chairman of Shell Companies Philippines. Corporation from 1998 to 2010. He was a former He has been a member in the Philippines from 1997 to 2001 and held Deputy Treasurer of the Philippines, National of the Money Market various executive positions in Pilipinas Shell Mr. Reyes is a graduate of the Treasury, Department of Finance from 1990 to Association of the Petroleum Corporation from 1971 to 2001. Ateneo de Manila University 1997. Mr. Dispo started his career as Financial Philippines since 1998 and with a degree of Bachelor Analyst in the Department of Trade and FINEX since 2012. Mr. Reyes completed the Commercial of Arts major in Economics Industry from 1988 to 1990 and Administrative Management Study Program, Shell in 1965 with a distinction of Officer in the Department of National Defense Mr. Dispo was the CEO of International, United Kingdom in 1986, the cum laude. from 1987 to 1988. the Year awardee in 2014 Program for Management Development at given by Asia CEO Awards Harvard Business School in 1976, and with Mr. Dispo graduated with the degree of and became a Finalist in academic units completed in MBA at the Ateneo Bachelor of Science in Economics from the CNBC Asia Best CEO, 2014. Graduate School of Business in 1971. San Sebastián College, Manila in 1984. He took Bachelor of Science major in Management from the Pamantasan ng Lungsod ng Maynila

48 Annual Report 2019 Annual Report 2019 49 Bienvenido E. Laguesma, Filipino, 69 years old, Independent Director since 2017

Mr. Laguesma is a Senior Partner at Laguesma Lyceum of the Philippines Magsalin Consulta Law Offices, Independent awarded Atty. Laguesma Awards & Director of Philippine Bank of Communications with an Outstanding (PSE-Listed), and Director of Rural Bank of Alumnus award in 1971, Angeles, Cavite United Rural Bank, Asia United Doctor of Humanities, Leasing & Finance Corp., and Asia United Fleet Honoris Causa, by the Management Services, Inc. Adamson University in 1999, and Doctor of Humanities, Recognition He served as Secretary of the Department of Honoris Causa, by the Labor and Employment from 1998 to 2001, Central Colleges of the Commissioner of Social Security System from Philippines in 2016. 2011 to 2016. He also became Presidential He is a member of the Assistant of the Office of the President of the Integrated Bar of the Republic of the Philippines from 1996 to 1998, Philippines since 1976, the Undersecretary of the Department of Labor and Philippine Bar Association Employment from 1990 to 1996, Administrator since 2004, and the Rotary Puregold Price Club, Inc. in the National Conciliation and Mediation Club of Manila since 2002. Board from 1987 to 1990, Regional Director of Philippines’ One of the Best Companies to Work for in Asia the Department of Labor and Employment from Atty. Laguesma graduated 2018 and 2019 1982 to 1986, Assistant Regional Director from from the Lyceum of the 1981-1982, and Executive Labor Arbiter, National Philippines with a degree HR Asia Awards Labor Relations Commission from 1979 to of Bachelor of Arts major in Conferred by Business Media International (BMI) 1981. Mr. Laguesma started his public service as Political Science in 1971 and Labor Arbiter of the National Labor Relations Ateneo de Manila University Commission in 1979 and Provincial Director College of Laws with a of Bataan Provincial Labor Office 1978 to 1979, degree of Bachelor of Laws and Mediator-Arbiter of the Bureau of Labor in 1975. Relations from 1976 to 1978. Puregold San Fernando 1 Atty. Laguesma completed his Career Executive Best Bagwis Practitioner of Sustainable Consumption Development Course from the Development Academy of the Philippines from 1984 to 1985 October 4, 2019 and Public Administration Course from the SACOP San Fernando, Pampanga Royal Institute of Public Administration in London, United Kingdom in 1985. Conferred by the Department of Trade and Industry (DTI)

Jaime J. Bautista, Filipino, 63 years old, Board Consultant since 2019. Mr. Lucio L. Co, Chairman, Puregold Price Club 11th PRA President’s Award - “Patron of Micro Mr. Bautista is currently a member of the Board of Trustees of the University of the East, UE Ramon Magsaysay Memorial Medical Retail Entrepreneurship” Center, International School of Sustainable Tourism, Philippine Eagle June 16, 2016 Foundation Inc. and member of the Board of Directors of Airspeed 19th Outstanding Filipino Retailers and Shopping Centers of the International Corp., Alphaland Corp., Gothong Southern Shipping Lines, Inc., Sabre Travel Network Phils. Inc. Year (OFR-SCY) awards night Conferred by the Philippine Retailers Association (PRA) in He used to be the President of Philippine Airlines, Inc. (PAL) from 2014 to 2019 and from 2004 to 2012. He was the Executive Vice-President of cooperation with the Department of Trade and Industry (DTI) PAL from 1999 to 2004 and Senior Vice President – Chief Finance Officer from 1994 to 1998.

Mr. Bautista is a graduate of Colegio de San Juan de Letran, Intramuros, Manila, with a degree of Bachelor of Science in Commerce, Major in Accounting, 1977.

He completed a post-graduate course of Doctor of Philosophy in Humanities (Honoris Causa) from the Central Luzon State University, Muñoz, Nueva Ecija in 2018, and a Canada International Entrepreneurial Program from Capilano College, North Vancouver, British Columbia in 1990. 50 Annual Report 2019 Annual Report 2019 51 Real Estate Canaria Holdings Corporation No. 900 Romualdez St., Paco, Manila Corporate Directory Tel. No.: (632) 522-8801 to 04

Ellimac Prime Holdings, Inc. No. 900 Tabacalera Compound Grocery Retailing Puregold Price Club, Inc. Romualdez St., Brgy. 664 Zone 71 No. 900 Romualdez St., Paco, Manila Dist. V, Paco, Manila Tel No.: (632) 522-8801 to 04 Tel No.: (632) 522-8801 to 04

Kareila Management Corporation Fertuna Holdings Corp. (S&R Membership Shopping) Rizal Highway cor. Magsaysay Ave. 32nd St., 5th Avenue Subic Bay Freeport Zone, Zambales Bonifacio Global City, Taguig City Tel No.: (632) 522-2312/523-8633/ 523- Tel No.: (632) 888-0433 8635

Nation Realty, Inc. No. 900 Tabacalera Compound Romualdez St., Brgy. 664 Zone 71 Specialty Retailing Office Warehouse, Inc. Dist. V, Paco, Manila Lot 1 Blk 13, E. Rodriguez Jr. Ave. Tel No.: (632) 522-2312/523-8635 Bagumbayan, Quezon City Tel. No.: (632) 437-5680 Patagonia Holdings Corp. No. 900 Romualdez St., Paco, Manila Tel No.: (632) 242-5069/242-8343

NE Pacific Shopping Centers Corporation Km 111 Maharlika Highway Wine and Liquor Distribution Montosco, Inc. H. Concepcion, City Unit 1501 Federal Tower Tel. No.: (632) 522-8801 to 04 Dasmariñas St., Binondo, Manila Tel. No.: (632) 243-5530/243-8343 Pure Petroleum Corp. Lot Adjacent to Boton Wharf Meritus Prime Distributions, Inc. Subic Bay Freeport Zone, Zambales Unit 704 Federal Tower Tel. No.: (632) 522-8801 to 04 Dasmariñas St., Binondo, Manila Tel. No.: (632) 242-0635/242-0645

Premier Wine & Spirits, Inc. Oil and Minerals Alcorn Petroleum and Minerals Gate 1 Tabacalera Compound Corporation No. 900 Romualdez St., Paco, Manila No. 900 Romualdez St., Paco, Manila Tel. No.: (632) 524-2117/524-2165 Tel. No.: (632) 257-0851

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